Concordia Clubs Corp (CCC) - It has $500,000 investable fund to invest in either "BIG" or "Singa". The firm's cost of capital is 12% As the table below indicates, CCC should consider making the Singa investment because this will allow CCC to have more money after eighteen months. However, your manager directs you to calculate the present value of cash inflow of BIG and Singa respectively and compare on present value basis. The cost of capital is 12% per annum. Explain why on present value terms BIG may or may not be higher than Singa. BIG Investment Singa Investment Semi- Future Future annual Value Value Semi- Dividend Factor @ Factor@ annual Income 12%/2 Periods 123 1 7% $35,000.00 -6% 2 3 35,000.00 35,000.00 Future Value 1.1236 $39,326.00 1.0600 37,100.00 1.0000 35,000.00 Quarterly Quarterly Periods Dividend 1 $12,500.00 12%/4 Future -3% Value 2 12,500.00 1.1593 $14,491.25 1.1255 14,068.75 1.0927 13,658.75 Principal 500,000.00 Future 1.0000 500,000.00 value $611,426.00 3 12,500.00 4 12,500.00 1.0609 13,261.25 5 12,500.00 1.0300 12,875.00 6 12,500.00 1.0000 12,500.00 531,250.00 1.0000 531,250.00 $612,105.00